Commercial Practice Flashcards
What is Marketing?
Finding out the needs of the consumer and trying to meet those needs through services and products
What is technology push?
New technology fuels product innovation e.g. Computers
What is market pull?
New products are developed to meet the needs of a market e.g. Faster Computers
What is Market Research?
- Needs of consumers
- Customer satisfaction
- How much customers might be prepared to pay
What is Primary Reasearch?
The use of:
- Focus Groups
- Interviews
- Surveys
- Observations
What is Secondary Reasearch?
Research conducted by outside agencies:
- Internal Sales data
- Books
Primary Research Pros and Cons
- Tailored to a companies needs
- Up to date information
- Time consuming and expensive
Secondary Reasearch Pros and Cons
- No specific company needs
- May be out of date
- Quick to collect
- Cheaper than primary
Marketing Strategy (4 p’s)
-Product
-Price
-Promotion
-Place
Decisions a company makes regarding 4p’s to make their prodcut appealing to consumer.
Product
- What it looks like
- How it will perform
- Maintanence
- Durability
- What featur it will have
- Brand name
Price
How much a consumer is willing to pay
- Manufacturing costs
- Distribution costs
- Promotional costs
Penetrating Prices
Price set low to gain a market share
Price skimming
Competitive products can command a high price which is reduced with increased supply
Psychological Pricing
£1.99 insteas of £2.00
Predatory Pricing
Undercutting competitors
